Mortgage Troubles Concentrated, Not Widespread
The Mortgage Bankers Association recently released mortgage delinquency and foreclosure data at the state level for the fourth quarter 2007. As the maps above show, most of the delinquency and foreclosure troubles are concentrated in 12 states for each category.
For serious delinquencies, the states with the biggest problems are Michigan (8.97%), Indiana (8.35%), Florida (7.47%) and Nevada (6.53%), compared to the national average of 5.82%. Some of the states with the lowest delinquency rates include Wyoming (3.1%), Montana (3.2%) and Washington (3.2%).
States with the highest foreclosure start rates include Nevada (1.54%), Florida (1.46%) and Michigan (1.29%), and states with the lowest rates include Montana (.27%) and Wyoming (.29%), compared to the national average of .83%.
Comment: The worst of the mortgage delinquency and foreclosure troubles seem to be pretty concentrated in a small number of states (Nevada, Florida, Michigan, Ohio and Indiana), while the rest of the country is probably at normal levels for delinquencies and foreclosures. The data and maps above suggest that delinquency and foreclosure problems are certainly not as widespread of a problem as many think.